Accession tournaments: The application of a game theory derivative to the multi-dimensional family business accession process (Interactive paper)

Justin Craig, Bond University, Australia
Clay Dibrell, Oregon State University, USA

Abstract

We argue that the recent governance and professionalization focus in family business research conversations, while helpful in understanding succession, and family businesses in general, needs to be complemented with a theoretical discussion of the multi-dimensional accession process. We contend that this process is multi-dimensional as, unlike in a corporate setting where the incumbent is succeeded by a suitable successor, multi-generational family businesses are more complex and there is potentially a plethora of positions of influence for which actors can compete. We use tournament theory to propose how family actors will act in accession tournaments and propose that the absence of a ‘final’ tournament further distinguishes family from non-family businesses.